Gold may touch new high of Rs 62,000 this year on back of dollar weakness

Brokerages expect upside on hedging demand amid global slowdown risk

Demand for gold as a safe-haven asset may rise due to geopolitical uncertainty and the looming risk of recession in 2023, say brokerages.

They expect the yellow metal to touch a new high of Rs 62,000 in 2023 on the back of weakness in the dollar as the US Federal Reserve is likely to press pause on rate hikes early this year and may even cut rates in the fourth quarter of 2023.

“Also, Chinese economic growth should improve and boost consumer demand. The concern over weaker global economic growth and geopolitical tensions will make gold valuable as a hedge